796 lost 1,000 bitcoin

[jabo38]

When the f*ck will people learn, and stop keeping large amounts of money at exchanges. Especially shitty, small, non-transparent, obscure, unproven, or lacking-solid-reputation ones.

The only two exchanges I would currently trust my money with, are Kraken and Bitstamp. And then still, why the hell would I be keeping my money there if it's much safer in my own wallet.

Get this, people: EXCHANGES ARE NOT BANKS OR SAVING ACCOUNTS!

I'd be happy with the Coinbase Exchange as they will actually be insured. 

Also, it looks like a new player is coming on the market for exchanges.  It is not a "decentralized" exchange, but it is getting closer.  All the coins are held in multisig with the exchange only having one key.  This solves the hack problem and the Gox problem.  They can't run with your coins even if they want. 

I'd really like to see other exchanges implement this tech if it turns out to be solid. 

So far the two best solutions I have seen are these two.  Either have all the coins insured, or don't actually have the keys to them. 

Good thing some solutions are coming that provide a little higher rate of trust.

[AtheistAKASaneBrain]

Anndd another one bites the dust. I really hope Coinbase and Gemini dont suffer from this otherwise its game over.

[sethminer14]

Anndd another one bites the dust. I really hope Coinbase and Gemini dont suffer from this otherwise its game over.

No kidding. If the they fall, we're toast

[nextblast]

It might as well be an advertisement by 796, as many have pointed out in QQ (most popular IM App in China) group chat today.
Investers also accused why 796 did not disclose more detailed info.
We should keep tracking this event.

[bobboooiie]

If true, they still made close to 1k on fees this month. So it will not be that big of a deal. For such an unknow exchange they are quite big

[Kazimir]

I'd be happy with the Coinbase Exchange as they will actually be insured.

Agreed, although Coinbase is not available for the majority of the world. I believe they operate in just one country.. sounds pretty centralized / limited / restricted to me. But at least getting licensed is a good start.

I also have high hopes for a fully decentralized P2P exchange system. Although I think it will take at least another year before we got that up & running.

[Geenstijl]

Thank god Coinbase is bringing in some trust.

[Gyfts]

Inside job of course

After translation from google, seems that a Chinese exchange called 796 was hacked out of 1,000 BTC, by hackers switching the deposit (or withdrawal) address.. or something to that effect.

"... after detailed analysis of various logs and audit records, we found the system to update a few days ago the existence of sub-module exploited by hackers, causing the user to mention the current address has been tampered with, coupled with hackers deliberately used a similar address with the original withdrawals address to confuse users and our manual review."

Here is the google translation link I used.
https://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2F8btc.com%2Fthread-13689-1-1.html&sandbox=1

According to this it was hackers switching the withdrawal/deposit addresses on the site. So they couldn't control how much Bitcoin was sent to the "hacker's" wallet. Regardless, I doubt it was some hacker. Logically speaking, why would a hacker gain so much to a site just to switch the withdrawal address. Doesn't make sense to not just steal the BTC from the hot wallet of the exchange when a change in deposit/withdrawal addresses could easily be found and fixed (or so I thought).

[jabo38]

I'd be happy with the Coinbase Exchange as they will actually be insured.

Agreed, although Coinbase is not available for the majority of the world. I believe they operate in just one country.. sounds pretty centralized / limited / restricted to me. But at least getting licensed is a good start.

I also have high hopes for a fully decentralized P2P exchange system. Although I think it will take at least another year before we got that up & running.

Coinbase actually operates now in 19 countries!  Although that is just an instant buy/sell option.  Basically it is in the US and Europe. 

In the US it is only an "exchange" in half of the states (unfortunately not mine).  But we can be assured that they are looking to get licenses and regulated in many more countries to come, as well as expanding to many more countries to com. 

Also, earlier I wrote about an exchange that has all coins in multi-sig with the client having the keys so these hacks can't happen but I forgot the link. https://www.cryptocoinsnews.com/multisignia-bitcoin-market-exclusively-using-multi-signature-wallets/

It isn't decentralized, but it is a whole lot better than exchanges operating on fractional reserves or Goxxing us.   

[mistercoin]

Jesus, not good. I feel for those affected. Having things stolen from you is never any fun. Hopefully they can recover from the loss, and also increase OpSec.

[mistercoin]

If true, they still made close to 1k on fees this month. So it will not be that big of a deal. For such an unknow exchange they are quite big

Most things hailing from China are quite massive when compared to our western services

[LiteCoinGuy]

thats bad. you should store your BTC on a hardware-wallet instead of a shady chinese exchange:

https://bitcointalk.org/index.php?topic=899253.0

[tss]

seems the site is down now.  wonder if it will come back? 

[farlack]

Anndd another one bites the dust. I really hope Coinbase and Gemini dont suffer from this otherwise its game over.

No kidding. If the they fall, we're toast

Hardly their profits are public they're earning like 600 btc a month.

[thompete]

Anndd another one bites the dust. I really hope Coinbase and Gemini dont suffer from this otherwise its game over.

No kidding. If the they fall, we're toast

Hardly their profits are public they're earning like 600 btc a month.

I don't think losing one months of profit would force them to shut them down as 600 BTC is a significant amount for any kind of business.

[hongw]

When the f*ck will people learn, and stop keeping large amounts of money at exchanges. Especially shitty, small, non-transparent, obscure, unproven, or lacking-solid-reputation ones.

The only two exchanges I would currently trust my money with, are Kraken and Bitstamp. And then still, why the hell would I be keeping my money there if it's much safer in my own wallet.

Get this, people: EXCHANGES ARE NOT BANKS OR SAVING ACCOUNTS!

As mentioned above it looks like that 796 offers very high leverage so people probably had money in the exchange in order to speculate as to where the price is going in the future.

I don't think most of their customers were using it as a bank account but rather more like a brokerage account.

[koelen3]

Atleast someone (HAckers) are being attracted to bitcoins !
not funny though 
THese exchanges are going down slowly

[studio1one]

I am currently unable to withdraw from 796

[sandykho47]

What does this mean? A little lost here

I Think this is not a little lost this a a lot of money to
we cant say this a little amount

[studio1one]

What does this mean? A little lost here

I Think this is not a little lost this a a lot of money to
we cant say this a little amount

their cold wallet remains in tact I checked it today